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Monday, 13 May 2013

STOCK MARKET UPDATE: 14.05.2013



STOCKS
Karachi Stocks Up 328.55 Points:
KARACHI, May 13: At the close of trading, the KSE-100 index was at 20244.82, up 328.55 points. 

(Today 14th April- Market is 186.58 Up@ 11.21 am)


May 13, 2013

5 TOP GAINERS  &  LOOSERS:

Wyeth Pak
Rs 19.73
Rafhan Maize
Rs (222.99)
Murree Brewery
Rs 17.61
Bata Pak
Rs (79.99)
Siemens Pak
Rs 15.65
Shezan Int’l
Rs (32.05)
Bhanero Textile
Rs 14.99
Mitchells Fruit
Rs (18.85)
Indus Dyeing
Rs 13.00
Island Textile
Rs (13.00)

Stocks settle above 20,000-level
KARACHI, May 13: The Karachi stock market warmly greeted the election results with KSE-100 index up by a staggering 328.55 points or 1.65 per cent on Monday, the first post-election trading session.
The index easily dismantled the 20,000 barrier and closed way above that, at 20,244.82 points. The market saw across the board surge in stock prices, but several blue chips were major gainers. The Mansha group stocks, MCB Bank and Nishat Mills hit the ‘upper lock’.
MCB Bank has rallied with three ‘upper locks’ in a row, with the stock up by about Rs34 or 15 per cent in three days. Index heavyweights in energy, cement and banks led the rally.
Mohammad Sohail, CEO at Topline Securities observed that contrary to market expectations of a hung parliament and weak coalition government, the emergence of a single party with comfortable majority to be able to form the government was thought to bring good tidings for the country, which could bring stability and help dispel economic woes.
Both local and foreign investors were aggressive buyers who saw value in the country equity market where stocks were currently trading at a multiple of seven times, which was lower than the regional markets by 30-40 per cent, Sohail said.
Analyst Veer Bajaj at JS Global also said that for the KSE, the key positive was that election results were far more decisive than the pre-poll outlook, with PML-N emerging dominant and two-time former Prime Minister Nawaz Sharif all set to take the seat for the third time.
He observed that the market broke the 20,000 psychological barrier as investors seemed positive overall even when prices of stocks were at such high level.
Many scrips touched ‘upper lock’ including PSO, NML, MCB Bank, Pioneer Cement and PIA. Cement sector was the volume leader after the release of monthly cement figures.
Analyst Abdul Azeem at Invest Capital pointed out that as per the PML-N manifesto, promises were made on low interest rate scenario to provide level-playing field to local industry and low tax rates. Both factors bode well for the local capital market.
Moreover, expectation of improved energy position mainly in Punjab will keep textile, cement and other industries’ profitability on the higher side.
Samar Iqbal, Senior Manager Equity said that investors feel that stable government would force economic leaders to take bold steps to put economy back on track. PSO closed at upper limit as investors expect some resolution on the circular debt front.
“Stability is good for the market,” said Syed Faisal Shaji at Standard Capital.
The foreign investors continued to be bullish on Pakistan equity. On Monday, foreign inflow amounted to $7.29 million, which led the local buyers. “In the last four sessions, foreign investors have bought equity worth $30m,” a analyst calculated. Among local participants, ‘companies’ went into aggressive buying on Monday with fresh investment of $4.94 million.
‘Individuals’ also took heart and picked up choice scrips of the value of $0.40, after several days of profit-taking. “Banks” offloaded shares worth $7.29 million on Monday and mutual funds were also in the ‘sell’ mode, disposing of stocks worth $1.95m to take profit.
Turnover jumped to 280 million shares on Monday, from 218 million shares traded last Friday. Trading value shot up by Rs2.679 billion to Rs9.806 billion, from Rs7.126 billion. Fauji Cement was in the lead on the active list with a huge volume at 32m shares, up by 40 paisa to Rs10.58.
Karachi stocks hit all-time high on Sharif win: KARACHI: Karachi stocks hit an all-time high Monday following Nawaz Sharif's strong victory in landmark elections, which revived hopes the steel tycoon's pro-business agenda could spark an economic revival.
The benchmark index of top 100 shares rose 1.6 per cent to 20,232 points in early trade, surpassing the 20,000 mark for the first time, after Sharif's Pakistan Muslim League - Nawaz (PML-N) emerged with a clear lead over its rivals.
The election results defied analysts' predictions of a weak parliament as the PML-N looked able to form a government without the help of its traditional rival the Pakistan Peoples Party and new challenger Imran Khan's Pakistan Tehrik-i-Insaaf.
“We were fearing a hung parliament and thus a weaker and unstable government would come into power as a result of the elections,” said Mohammad Sohail, the chief of Topline Securities, a leading brokerage house in Karachi.
Investors are hopeful of an economic revival under Sharif, whose pro-business policies earned him a good reputation among traders and industrialists during his two previous tenures in the 1990s.
“He liberalised the economy by launching a privatisation programme and liberalised the financial sector allowing foreign investors to step into Pakistani capital markets,” Sohail said.
Though his privatisation agenda was never fully implemented, Sharif has promised in early interviews to pick up where he left off.
Local bourse surges to new record at 20,244 points: KARACHI: The successful holding general elections in the country and PML-N Chief Nawaz Sharif’s appearing ready to form the government gave benchmark KSE 100-Share Index at Karachi Stock Exchange (KSE) a massive push to close at a record level of 20,244.82 points, up by 328.55 points on Monday.
Share prices witnessed increase on almost all the counters right from the beginning of today’s trade and remained in the positive zone till market close.
The traders and investors are positive that the new government would take steps towards revival of the economy in the country.
MCB and Nishat Mills registered impressive gains and closed at Rs261.90 and Rs89.99 respectively.

Company News:
S&P sees stable rating on Pakistan: KARACHI, May 13: Standard and Poor’s (S&P) Ratings Services stated on Monday that Pakistan’s parliamentary election results had set the stage for longer-term stability of ‘B-’ sovereign credit rating on the country.
A statement released by the international rating agency from Singapore, said that the partial results from the elections held on May 11 indicated a strong lead for the Pakistan Muslim League-Nawaz (PML-N). The rating agency acknowledged: “The elections were the first in the country’s history in which an elected government handed power to another elected government”.
Standard & Poor’s credit analyst Agost Benard said in his report that it was a key achievement for Pakistan’s maturing democracy, in the face of general economic malaise, widespread and incessant sectarian and political violence, large-scale domestic insurgencies, and ongoing tension with neighbouring India.
S&P recalled that in a commentary titled “Successful elections are crucial as Pakistan’s balance of payments pressures mounts,” published April 4, 2013, the rating agency had outlined its views that timely, successful, and credible elections were essential for Pakistan to deliver a government with a reasonable chance of tackling the country’s economic imbalances, including a looming balance of payments crisis.
“Preliminary election results indicate such an outcome,” analyst Benard said in his report on Monday. He stated that the elections took place on schedule, without major shortcomings that would result in a disputed outcome, and with a large voter turnout despite intimidation and bombings on election day by extremist elements.
The 60pc voter turnout, compared with 44pc in the 2008 elections, ensures greater legitimacy for the new government, S&P opined. Moreover, the results suggested that PML-N was likely to have a lead that would enable it to form a coalition without the support of major political rivals or the minor parties.
“We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon,” Benard said. This is needed to stabilise external finances and to provide the policy framework for necessary fiscal and energy sector reforms.
“If successful, the efforts will underpin the continued stability of the sovereign ratings at the current ‘B-’ level”, analyst Benard affirmed.
Regarding Standard & Poor’s Ratings Services, the paper mentioned that it was part of McGraw Hill Financial, the world’s leading provider of independent credit risk research and benchmarks.
It publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities.
S&P has 1,400 credit analysts in 23 countries and more than 150 years’ experience of assessing credit risk.


MOHAMMED SALEEM MANSOORI

Sunday, 12 May 2013

STOCK MARKET UPDATE: 13.05.2013




STOCKS
Karachi Stocks Up 254.81 Points:
KARACHI, May 10: At the close of trading, the KSE-100 index was at 19,916.27, up 254.81 points. 
 (Today 13th April- Market is 318.66 Up@ 10.40 am)

KSE closes at record high, rupee steady a day before elections
KARACHI: Pakistan’s stocks closed higher on Friday, driven by steady foreign buying in large cap stocks, dealers said on the eve of the country’s May 11 elections.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 1.30 per cent, or 254.81 points, higher at 19,916.27 points.
Muslim Commercial Bank Ltd rose 5 per cent to 249.43 rupees whereas Pakistan State Oil Company Ltd was up 3.83 per cent to 212.15 rupees.
In the currency market, the rupee ended steady at 98.37/98.42 against the dollar, Overnight rates in the money market fell to 9 per cent from Thursday’s close of 9.40 per cent.



MOHAMMED SALEEM MANSOORI

Thursday, 9 May 2013

STOCK MARKET UPDATE: 10.05.2013



STOCKS
Karachi Stocks Up 188.91 Points:
KARACHI, May 09: At the close of trading, the KSE-100 index was at 19661.46, up 188.91 points. 

 (Today 10th April- Market is 219.75 Up@ 11.32 am)


May 09, 2013

5 TOP GAINERS  &  LOOSERS:

Shezan Int’l
Rs 32.13
Rafhan Maize
Rs (232.50)
Exide Pak
Rs 22.83
Bata Pak
Rs (104.50)
Indus Dyeing
Rs 21.97
Wyeth Pak
Rs (27.71)
Murree Brewery
Rs 16.87
Island Textile
Rs (24.00)
MCB Bank
Rs 11.31
Siemens Pak
Rs (15.46)

Stocks gain 188 points on foreign buying
KARACHI, May 9: Stocks moved full steam ahead on Thursday with the KSE-100 index posting staggering gains of 188.91 points or one per cent to close at new record best at 19,661.46 points.
Foreign investors led the rally on Thursday just as the day earlier. Foreign funds inflow in the equity market amounted to a tall order of $8.04 million, which saw some of the heavyweights record
substantial gains. MCB Bank was in the forefront of gainers which shot up by Rs11.31 to hit its ‘upper circuit’ of 5 per cent increase from the opening price.

Local institutional and individual investors decided to seize the opportunity by offloading stocks at record high prices.
As a result, ‘companies’ were net sellers for the day at $0.36 million, banks posted net sales at $2.14m, mutual funds net sales at $1.8m, ‘other organisations’ net sales at $1.58m and individuals also deciding to take profit through sale of $2.15m worth equity.
The benchmark movement was one way, northwardly all through the session which was why the KSE-100 index ‘low’ was previous day’s close at 19472.55 points, while the ‘high’ was 19,736.25 points.
Market participants said that with elections only a day ahead, local investors were making calculated moves, lest their assessment of election results go awry.
Several stock brokers said that a thumping majority by a market-friendly government could give big boost to investor sentiments and the country’s capital markets, but in case of a loose coalition,
risk of uncertainty would rise. Until the close of trading session, it wasn’t abundantly clear whether the stock market would open on Friday, for lack of Federal government announcement of a holiday, but most believed that it would be a working day, which made investors decide to hold on to their blue-chip stocks for another day in the hope that if foreign buy materialises also on Friday, they could reap some more gains before opting to sell and trim their portfolio.

The turnover, both in terms of volume and value was, however, heavy with 234 million shares of the trading value of Rs8.137 billion changing hands on Thursday, compared with 252m shares valued at Rs9.248bn traded the day earlier.
Some market participants also pointed to the rise in global equity markets. The S&P on Wall Street closed at record highs. Over the past five sessions, the S&P has closed at repeated record highs.
Regarding KSE performance on Thursday, analyst Ovais Ahsan at JS Global observed that Pakistan Petroleum was the second largest positive contributor to the index after MCB Bank. PPL rallied by 1.5pc as investors seemed to appreciate the company’s first mover’s advantage of exploring tight and shale gas potential in Pakistan.
National Bank of Pakistan was up 2.9pc, which also being the government’s treasury bank, invited investor interest due to attractive valuations.
Market capitalisation rose by Rs33bn to Rs4.836 trillion on Thursday, from Rs4.803 trillion a day earlier.
Among the 381 stocks that came up for trading on Thursday, 205 shares ended in positive and 142 in negative territory.
The top ten active list showed mix of first and second-tier stocks. Jah Sidd Co rose by 95 paisa to Rs11.45 on 22m shares, Lotte Chemical was up by 3 paisa to Rs7.80 on 16m shares, TRG Pakistan gained 68 paisa to Rs9.46 on 15m shares, Bankislami Pakistan edged higher by 4 paisa to Rs6.26 on15m shares, Fauji Cement shed 12 paisa to Rs9.93 on 11m shares, Wateen Telecom was up 9 paisa to Rs4.84 on 10m shares, Engro Corporation continued the gaining spree with addition of Rs1.91 to Rs138.92 on 9m shares; and NBP rallied by Rs1.12 to Rs40.15 on 7m shares.
Company News:
SECP actions against firms: ISLAMABAD, May 9: The Securities and Exchange Commission of Pakistan (SECP) has adopted an aggressive approach for prevalence of a fair market.
The Securities Market Division during the month of April, issued 10 orders, 34 showcause notices, and 12 warning letters tovarious companies and individuals for contravening various provisions of the Securities and Corporate Laws.
The order was passed against the CEO of Cyan Ltd who was also a director in Dawood Hercules Corporation Ltd, an associated listed concern, for indulging in a scheme of insider trading, and a penalty of Rs1m was imposed.
Further, in the same context, an order was passed against Cyan Ltd for insider trading in the scrip of Dawood Hercules, and a penalty of Rs2m was imposed.
Moreover, an order was issued against Cyan Ltd for trading in the shares of its associated concern in the closed period.
Based on the findings of on-site inspections, orders were issued against Axis Global Ltd, Al-Hoqani Securities, Shajar Capital Ltd, First Equity Modaraba, Muniff Ziauddin Junaidy and Co, Nasir Javaid Maqsood Imran Ashfaq Chartered Accountants and Riaz Ahmad Saqib Gohar and Company Chartered Accountants.

During April, five show-cause notices were served for insider trading to various entities and individuals.
Moreover, three show-cause notices were issued to listed companies for violation of the Listing Regulations.
Six showcause notices were issued to KSE, brokers and their auditors for violation of the Securities and Exchange Ordinance, 1969.

In addition, 16 showcause notices were issued to directors and beneficial owners of listed companies for late filing of the returns of beneficial ownership, and four showcause notices were issued to beneficial owners and issuers of the listed securities for recovery of the tenderable gain under Section 224 of the Companies Ordinance, 1984.
Warning letters were issued to Ashfaq Textile Mills, KSB Pumps Company, and Prudential Capital Management for not abiding by the listing regulations of the KSE.
Moreover, nine warning letters were issued to the beneficial owners of Bank of Khyber, Murree Brewery and Pak Gum and Chemical Ltd for late filing of returns of beneficial ownership.—APP

MOHAMMED SALEEM MANSOORI